Many first time home buyers end up working with a subagent, otherwise known as a seller’s agent and it’s important to understand that these agents are working on behalf of the seller, not the home buyer. Seller’s agents are hired to represent the seller and bring the buyer to the deal, but they do work on a commission and have certain rights and responsibilities towards the buyer.
Real estate regulations vary across different states but there are federal laws that define common responsibilities, and limitations, of a seller’s agent. Ilyce Glink, Author of ’100 Questions Every Home Buyer Should Ask’, advises home buyers to know the exact terms of service of an agent by reading the agency disclosure form. Clarify what each provisions mean with the agent; but if you really cannot understand the wordings, it is best not to sign the form. Below are the key obligations of a seller’s agent:
A seller’s agent can give you information regarding similar homes in the area. This information is called comparables or ‘comps’ and is a listing of homes that have similar price, size and area, and age. Comps can include homes that were recently sold or are currently in the market. This information allows a homebuyer to have a basis of comparison to ascertain the value of a home.
The seller’s agent cannot tell you which home to choose when you are still deciding. Even though it’s the seller’s agent’s job to sell you the home they are commissioned to sell, they do not have a right to ‘push’ their home over another in question. If you like two homes and the broker is working with both sellers, they cannot persuade you to purchase one over the other; the decision is ultimately yours to make.
The seller’s agent cannot point out defects in the home. The seller broker cannot say anything that would influence your decision to purchase, or not purchase the property. Any material hidden defects can be disclosed, but you will need to conduct your own research to find out if the home is in good condition.
The seller’s agent cannot make suggestions on the best offer for the home. It may be tempting to ask the seller what price you should pay for the property, but they cannot legally offer this information at any time during your communications. The seller broker has certain obligations to the seller, so this information may impede on that relationship.
A seller’s agent has the right to ask you for referrals. Most sellers’ agents run their own businesses and are likely to ask you for referrals. It is up to you to decide if a seller’s agent is worth referring to your fiends and relatives.
In the end, a seller’s agent is essential in making the homebuying process easy for both parties. Just bear in mind that you still have to investigate the property and conduct your own market study and even work with your own agent for you to acquire a home that meets all of your needs.
Author: Alexandria P. Anderson specializes helping people to find and purchase Bloomington homes for sale in Minnesota, as well as Bloomington property for her MN real estate clients.